Ontario Real Estate Law Flashcards
6 cards from real OREA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ontario Real Estate Law flashcards as text
In Ontario, what does 'caveat emptor' mean in the context of real estate?
Answer: Buyer beware — the buyer is responsible for inspecting and investigating the property
Caveat emptor ('buyer beware') is a common law principle meaning the buyer is generally responsible for inspecting the property and discovering defects before purchase. However, sellers must still disclose latent defects they know about.
What is the purpose of a 'status certificate' under the Ontario Condominium Act?
Answer: To provide financial and legal information about a condominium corporation and a specific unit
A status certificate provides critical information about the condominium corporation including its financial health, reserve fund, pending lawsuits, rules, and any special assessments, as well as details specific to the unit being purchased.
Under the Ontario Building Code Act, what is required before construction or renovation of a building?
Answer: A building permit must be obtained from the local municipality
The Building Code Act requires that a building permit be obtained from the local municipality before commencing construction, renovation, or demolition of buildings. This ensures compliance with safety standards.
In Ontario, what is the effect of a 'certificate of pending litigation' (CPL) on a property?
Answer: It serves as notice that there is a court action affecting the property, which may affect its marketability
A CPL is registered on title to give public notice that a court action has been commenced that may affect the property. It can cloud the title and make it difficult to sell or mortgage the property until the litigation is resolved.
Under Ontario law, what is 'adverse possession' and does it apply under the Land Titles system?
Answer: It is the acquisition of title through continuous possession, and it generally does not apply under the Land Titles system
Adverse possession allows a person to acquire title to land by occupying it openly and continuously for a prescribed period. Under the Land Titles system in Ontario, adverse possession claims are generally barred, unlike under the Registry system.
What is the purpose of the 'Environmental Protection Act' in relation to Ontario real estate?
Answer: It addresses contamination, environmental assessments, and liability for environmental cleanup on properties
The Environmental Protection Act governs the discharge of contaminants, environmental orders, and cleanup liability. Property owners can be held responsible for environmental contamination, making environmental assessments critical in real estate transactions.